New American Funding vs Better.com

Kalicia Bateman
Kalicia Bateman | Contributor

New American Funding and Better.com are both highly rated mortgage companies on BestCompany.com:

  • 97% of New American Funding reviews are 5-star.
  • 95% of Better.com reviews are 4-star or 5-star.

With overwhelmingly positive reviews, both companies could be a good choice for your mortgage needs.

However, there are key differences, such as available loan types, refinance options, and state availability, that could impact your choice between the two companies.

Jump down to read a detailed comparison of both companies or helpful FAQs.

New American Funding logo verified_user
#2 New American Funding
9.9 Overall Score
4.9
star star star star star
(467)
Better.com logo
#7 Better.com
7.3 Overall Score
4.7
star star star star star_half
(517)

Overview

New American Funding

Minimum Down Payment

3%

Minimum Credit Score

620

Government-Insured Loan Types

VA, FHA

Average Time to Closing

Approx. 30 days

Time in Business

19 Years

Better.com

3%

N/A

N/A

N/A

5 Years

Ratings

New American Funding

Overall Score
9.9 of 10
Review Score
4.9
star star star star star
Value for Money
4.9
star star star star star
Quality of Product or Service
4.9
star star star star star
Company Trustworthiness
4.9
star star star star star
Likely to Recommend
9.8 of 10

Better.com

7.3 of 10
4.7
star star star star star_half
4.7
star star star star star_half
4.7
star star star star star_half
4.7
star star star star star_half
9.3 of 10

Pros & Cons

New American Funding

PROS

  • Online mortgage process
  • On-time closing guarantee
  • Home equity loan options available
  • Mortgage payment assistance provided (if necessary)

CONS

  • Higher than average mortgage rates
  • Not licensed to lend in Hawaii

Better.com

PROS

  • Online application process
  • No lender fees
  • Highly-rated customer service

CONS

  • No VA or USDA loans
  • No home equity loan options

Reviews

New American Funding

Number of Reviews
467
Review Breakdown
4.9
star star star star star
5 star
97%
4 star
1%
3 star
0%
2 star
0%
1 star
2%

Better.com

517
4.7
star star star star star_half
5 star
77%
4 star
18%
3 star
2%
2 star
1%
1 star
2%

Reviews for New American Funding

Helpful Favorable Review

check_circle

Review Source

star star star star star

Pam Mouille Houston, TX

New American funding is hands down the best choice of companies to fund your home through! They are profession, quick, and walk you through the whole process in a down to earth, honest, and genuine way. I would highly recommend them to anyone needing loan services!

2 months ago

Helpful Critical Review

star star_border star_border star_border star_border

Love Beltsville, MD

Horrible experience. New American funding caused me more financial harm then I already was in. They lied and mislead me. And now they could care less. I begged them to help me out of this horrible mess they caused me but the final answer I got was, nothing we can do. Now my life is turned upside down while their enjoying life.

1 month ago

Reviews for Better.com

Helpful Favorable Review

star star star star star_border

Amber Colorado Springs, CO

The individuals I worked with to secure the loan were phenomenal and went above and beyond to the loan done. The amount of tasks and paperwork involved, however, was sometimes redundant and confusing.

2 weeks ago

Helpful Critical Review

star star_border star_border star_border star_border

Dayne Topkin Asheville, NC

Better.com were almost the reason my home purchase fell through. We missed countless deadlines in the process. My loan processor never communicated important details about the loan with me. And their communication was completely unacceptable, I ended up having to call every day to find out where we were in the process.

1 month ago

The Final Word

Even though New American Funding and Better.com are both highly rated by customers, both companies may be better suited to specific needs — New American Funding offers a greater range of loan products and refinance options, while Better.com offers incomparable online convenience.

Let’s take a closer look at how the companies compare:

Mortgage Rates
Loan Types
Refinance Options
Mortgage Process
State Availability
Customer Reviews

Mortgage Rates

New American Funding and Better.com both provide daily update mortgage rates on their websites. In a quick comparison, Better offers lower rates than New American Funding. In fact, New American Funding’s rates are higher than the government-reported rate median for all mortgage lenders.

Keep in mind that advertised rates are typically the lowest available and are based on perfect qualifying parameters — high credit score (700+), down payment of at least 20 percent, etc. Thus, if you are considering either New American Funding or Better, you should pre-qualify with both companies to see what rates you may qualify for based on your specific financial situation.

Loan Types

New American Funding and Better.com offer the following loan products:

  New American Funding Better.com
Loan Types
  • Fixed Rate Loan
  • Adjustable Rate Mortgage (ARM) Loan
  • FHA Loan
  • VA Loan
  • I CAN Mortgage
  • Buydown Loan
  • Fixed Rate Loan
  • Adjustable Rate Mortgage (ARM) Loan
  • FHA Loan
  • Jumbo Loan

If you are looking for a conventional loan (fixed or adjustable), the more popular choice for homebuyers, either New American Funding or Better would be a good choice. Both companies also offer FHA loans, which can be a good option for first-time homebuyers or those who need greater flexibility in credit score and down payment requirements.

However, New American Funding offers several specialized loan products such as the I CAN Mortgage and Buydown Loan.

The I CAN Mortgage allows homebuyers to customize their loan term from 8 to 30 years, while the Buydown Loan provides options to reduce your mortgage rate.

Refinance Options

You can refinance your current home loan with either New American Funding or Better.com. 

However, if you are looking for options to tap into your home equity, only New American Funding offers home equity products in this case. New American Funding offers the following home equity refinance options, in addition to traditional rate and term refinancing:

  • Cash Out Refinance
  • Home Equity Line of Credit (HELOC)
  • Reverse Mortgage

Depending on your situation and desired outcome from your refinance, either company could be a good option.

Mortgage Process

While New American Funding has a variety of loan products, Better.com stands out with its acclaimed online application process. The majority of Better.com reviews mention how fast and easy it is to apply for a Better mortgage, including uploading documents and navigating the online customer portal.
New American Funding does also have an online application process, but if you are looking for the fastest and easiest online application, Better.com would be a good choice for you.

State Availability

Both New American Funding and Better.com operate nearly nationwide.

New American Funding doesn’t operate in the following states: Better.com doesn’t operate in the following states:
  • Hawaii
  • Hawaii
  • Massachusetts
  • Minnesota
  • New Hampshire
  • Nevada
  • Virginia
  • Vermont

Customer Reviews

New American Funding and Better.com are both highly rated companies with more than 95 percent of customers awarding them 5 stars.

Top praise for New American Funding includes the following:

  • Knowledgeable and professional loan officers who help you each step along the way
  • Quick customer service response times

Better.com is also highly praised for its customer service and fast response times, helping homebuyers get answers to their questions and concerns without delay. However, Better stands out in its reviews because of its online convenience. The Better mortgage process is handled entirely online from start to finish, providing access to a customer portal where borrowers can upload documents, manage their mortgage application, and receive live updates on their mortgage progress. 

Based on customer reviews for both companies, it appears that either would be a good choice for a mortgage. A deciding factor between New American Funding and Better.com could be whether or not you’d prefer everything to be online or if you’d like some interaction with a loan officer who can help you throughout the mortgage process. 

Whether you choose New American Funding or Better.com for your mortgage needs, customer reviews indicate that you will likely have a positive experience with either company.

Top Choice

New American Funding Logo
New American Funding

Frequently Asked Questions

Is New American Funding a broker or a lender?

New American Funding is a privately owned direct lender and one of the largest in the country. The company is a Fannie Mae, Freddie Mac, and Ginnie Mae direct mortgage lender, servicer and seller that services and sells loans in-house. While the company strives to service the majority of loans it originates, your loan my be sold to another mortgage servicer in the New American Funding network.

Is Better.com a direct lender?

Better.com is a direct lender, originating and underwriting loans in-house. However, after closing your loan will likely be sold.

How long does it take New American Funding to close on a home loan?

New American Funding's average closing time is 35 days, which is faster than the industry average of 40 to 65 days.

How long does it take Better.com to close on a home loan?

Better.com doesn't disclose an exact closing time for its mortgage loans. However, Better.com reviews frequently mention how fast the company was able to get from application to closing, indicating that its closing time is extremely competitive compared to other mortgage companies.

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